ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When I choose one item over another because I cant afford both, this is called an ____
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scarcity
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opportunity cost
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choice
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incentive
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Explanation:
Detailed explanation-1: -Something you choose to buy is an opportunity cost.
Detailed explanation-2: -Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost, ” we usually mean opportunity cost.
Detailed explanation-3: -Opportunity cost (also known as “alternative cost, ”) is the difference between a project’s cost estimate and another option that must be foregone in order to implement the project. Every choice we make also means giving up another option.
Detailed explanation-4: -The two types of opportunity costs are explicit opportunity cost and implicit opportunity cost.
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